Cement Demand Expected to Rise 6.5-7.5% in FY26: Crisil
Crisil projects a 6.5-7.5% increase in cement demand for FY26, driven by a recovery in the real estate sector and increased government spending on infrastructure projects.
Cement DemandReal EstateInfrastructureGovernment SpendingCrisilReal EstateApr 22, 2025
Weak state government spending in the first half of the fiscal year had previously slowed the pace of project execution. However, the second half is anticipated to see a significant uptick in activity, driven by a revival in the construction sector and increased funding for infrastructure projects. This is expected to provide a much-needed boost to the cement industry, which has faced challenges due to economic uncertainties and a slowdown in the real estate market.
The real estate sector, a major consumer of cement, has shown signs of improvement. Developments in housing, commercial, and industrial projects are gaining momentum, contributing to the overall rise in cement demand. Additionally, the government's push for urbanization and the launch of various housing schemes have further invigorated the market. These initiatives are expected to stimulate demand and support the growth of the cement industry in the coming years.
Crisil's analysis also highlights the role of large-scale infrastructure projects in driving cement consumption. The launch of projects such as the Bharatmala Pariyojana, Sagarmala, and the Smart Cities Mission has created a substantial demand for cement. These initiatives, coupled with the government's focus on improving connectivity and modernizing urban infrastructure, are expected to sustain the growth momentum.
Moreover, the cement industry is likely to benefit from the government's emphasis on sustainable and green building practices. The increasing adoption of green building materials and the push for energy-efficient construction are expected to create new opportunities for cement manufacturers. Companies that can innovate and offer eco-friendly solutions are likely to gain a competitive edge in the market.
However, the industry faces some challenges. The volatility in raw material prices, such as coal and petcoke, could impact production costs. Additionally, the availability of skilled labor and the need for continuous technological advancements are critical issues that need to be addressed to ensure sustained growth.
In conclusion, the Indian cement industry is on the path to recovery, with demand expected to rise significantly in FY26. The recovery of the real estate sector, increased government spending on infrastructure, and the focus on sustainable practices are key drivers of this growth. Cement manufacturers that can adapt to these changing dynamics and innovate will be well-positioned to capitalize on the opportunities ahead.
Crisil, a leading credit rating and research agency, provides valuable insights and analysis for various industries. Their projections and reports are widely regarded as reliable indicators of market trends and economic conditions. For more information, visit their official website or contact their customer support team.
Frequently Asked Questions
What is the projected growth in cement demand for FY26?
Crisil projects a 6.5-7.5% growth in cement demand for FY26.
What factors are driving the increase in cement demand?
The increase in cement demand is driven by a recovery in the real estate sector and increased government spending on infrastructure projects.
How is the real estate market contributing to the growth in cement demand?
The real estate market is contributing to the growth in cement demand through the revival of housing, commercial, and industrial projects.
Which government initiatives are expected to boost cement demand?
Government initiatives such as the Bharatmala Pariyojana, Sagarmala, and the Smart Cities Mission are expected to boost cement demand.
What challenges does the cement industry face despite the positive outlook?
The cement industry faces challenges such as volatility in raw material prices, availability of skilled labor, and the need for continuous technological advancements.
Related News Articles
Rustomjee Group to Diversify into Data Centers and Plotted Development Projects
Mumbai real estate market: Rustomjee Group plans to foray into data centers and launch plotted development projects
Abhinandan Lodha's Real Estate Ventures in Amritsar, Varanasi, and Vrindavan
Abhinandan Lodha, a prominent real estate developer, has made notable strides in the Indian real estate market, particularly in the cities of Amritsar, Varanasi, and Vrindavan. His ambitious projects have not only transformed the urban landscapes but also
Environmental Activism Slows Real Estate Growth in Pune
Pune's real estate sector is facing challenges due to persistent activism and stringent environmental regulations, causing delays in project approvals and increased regulatory scrutiny.
Massive Blast at Ordnance Factory in Bhandara, Maharashtra: Many Feared Dead
A major explosion has occurred at an ordnance factory in Bhandara, Maharashtra, leaving many feared dead and several injured. The incident has sparked a nationwide alert, as rescue and relief operations are underway.
Karnataka RERA Holds Real Estate Developer Accountable for Delayed Possession
The Karnataka Real Estate Regulatory Authority (KRERA) has issued a ruling against Bengaluru-based real estate developer Shriram Properties, mandating them to pay ₹12.7 lakh as compensation for delayed possession.
BPTP Group to Invest ₹3000 Crore in Luxurious Housing Project in Gurugram
The thriving Delhi-NCR real estate market is set to witness an ambitious development project by BPTP Group, which plans to invest ₹3000 crore in a new luxury housing project along Gurugram's Dwarka Expressway. The project will offer 2 and 3 BHK apartments